Read the passage. Then answer the question that follows.
Jimena recently took out a fixed-rate loan from a bank in order to purchase a new car. She agreed to repay the loan within five years. Unexpectedly, the inflation rate rose dramatically shortly after she took out the loan.
Will this situation provide more financial benefit to Jimena or the bank? Why?
A Jimena, because the value of the money she was loaned will increase
B the bank, because the value of the money it loaned to Jimena will increase
C Jimena, because she will repay the loan with money worth less than the money she was loaned
D the bank, because it will be repaid with money worth more than the money it loaned to Jimena
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Read the passage. Then answer the question that follows. Jimena recently took out a fixed-rate loan from a bank in order to purchase a new ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
We have a separate country known as Lezette-ville. The GDP per capita in 2010 was $18,000 in 2010 dollars. While in 2018, the GDP per capita was $20,725 in 2018 dollars. The CPI in 2010 is 218 while the CPI in 2018 is 251.
Answers (1)
Which of the following are properties of a savings account? Select all that apply. A person can access the money at any time. There is a lower earning potential. They are short term. Risk is involved.
Answers (2)
Casey is opening up his own personal training facility. what is one of the advantages he has?
Answers (2)
Agency relationships are normally consensual, coming about through voluntary consent and agreement between the parties. a. True b. False
Answers (1)
How to choose business name
Answers (1)
New Questions in Business
An industry with oligopolistic competition faces falling profits and its sales growth is slow. Demand for individual brands has become quite elastic--as consumers see competing products as almost homogeneous. Several firms have dropped out.
Answers (1)
Ros Corporation's flexible budget cost formula for indirect materials, a variable cost, is $0.90 per unit of output.
Answers (1)
The process by which goods, services, or ideas are used and transformed into value is referred to as cost behavior analysis.
Answers (1)
Globalization increases the interdependency of the world's countries. Inflation in one country would most likely
Answers (1)
On July 9, Sheb Company sells goods on credit to Wooley Company for $5,000, terms 1/10, n/60. Sheb receives payment on July 18. The entry by Sheb on July 18 is: A. Cash 5,000 Accounts Receivable 5,000 B.
Answers (1)